First Financial Bankshares Inc has reduced its investment in Williams Companies, Inc. (NYSE: WMB) by 0.5% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the institutional investor sold 7,666 shares, leaving it with a total of 1,460,750 shares in the pipeline company. This stake represents approximately 1.9% of First Financial Bankshares’ portfolio, making Williams Companies its 14th largest holding. As of the latest reporting period, First Financial Bankshares’ holdings in Williams Companies are valued at around $92.5 million.
Several other institutional investors have also adjusted their positions in Williams Companies recently. LRI Investments LLC increased its stake by 8.8% during the third quarter, acquiring an additional 176 shares to reach a total of 2,169 shares valued at $137,000. Similarly, Patten & Patten Inc. TN raised its holdings by 1.7%, now owning 11,087 shares worth $702,000 after buying an additional 187 shares.
Chesley Taft & Associates LLC also increased its position by 1.9%, bringing its total to 10,420 shares valued at $660,000. Other notable increases include the Bank of Jackson Hole Trust, which raised its holdings by 42.5%, owning 671 shares worth $42,000 after acquiring 200 additional shares. Tradewinds Capital Management LLC lifted its stake by 9.0%, now holding 2,425 shares valued at $154,000. Overall, institutional investors and hedge funds now control approximately 86.44% of Williams Companies’ stock.
In related news, SVP Terrance Lane Wilson sold 2,000 shares of Williams Companies on February 2, 2024, at an average price of $66.39 per share, totaling $132,780. Following this transaction, Wilson retains ownership of 293,545 shares valued at approximately $19.5 million, reflecting a 0.68% decrease in his stake. Insider ownership currently stands at 0.44%.
Williams Companies Financial Performance
Williams Companies released its quarterly earnings report on February 10, 2024. The company reported earnings per share (EPS) of $0.55, slightly below analysts’ expectations of $0.57. Despite this, Williams Companies achieved a net margin of 21.90% and a return on equity of 17.32%. The company’s revenue for the quarter reached $3.20 billion, surpassing the consensus estimate of $3.10 billion. In the same quarter of the previous year, the company reported an EPS of $0.47. For fiscal year 2026, Williams Companies has provided guidance of $2.200–$2.380 EPS, with analysts forecasting an EPS of $2.08 for the current year.
The company also declared a quarterly dividend of $0.525 per share, payable on March 30, 2024. Shareholders of record on March 13, 2024, will receive this payment. This marks an increase from the previous quarterly dividend of $0.50, reflecting an annualized dividend of $2.10 and a dividend yield of 2.9%. The company’s dividend payout ratio currently stands at 93.46%.
Analyst Ratings and Market Outlook
Recent analyst reports indicate a generally positive outlook for Williams Companies. TD Cowen raised its target price on the stock from $69.00 to $70.00 and maintained a “buy” rating in a report dated November 6, 2023. Weiss Ratings reaffirmed a “buy (B)” rating in December, while Mizuho upgraded shares to “strong-buy” in late October. Tudor Pickering also elevated its rating from “hold” to “strong-buy.”
Stifel Nicolaus increased its price objective from $69.00 to $78.00, maintaining a “buy” rating as of February 13, 2024. Currently, two analysts rate the stock as a Strong Buy, thirteen as Buy, and four as Hold, resulting in an average rating of “Moderate Buy” and a consensus price target of $75.36.
Williams Companies, Inc. is a U.S.-based energy infrastructure company primarily focused on the midstream segment of the natural gas value chain. The company develops, owns, and operates essential assets that gather, process, transport, and store natural gas and natural gas liquids (NGLs). Its services facilitate the movement of gas from production areas to end users, including utilities, power generators, industrial customers, and export facilities.
